UPDATE 2-Egypt's former tourism minister jailed for 5 years

* Found guilty of selling public land below market value
(Updates with Damac response to verdict)

By Isabel Coles

CAIRO, May 10 (Reuters) - Egypt's former tourism minister
was sentenced to five years' imprisonment on Tuesday for
squandering public funds, the second member of former President
Hosni Mubarak's cabinet to be jailed for financial misconduct.

Zoheir Garranah was among several former officials to be
investigated after an uprising against Mubarak, who left office
on Feb. 11.

The army generals who took control from Mubarak are under
pressure to take a hard line against high-level corruption and
show they are forging political change before an election for a
new parliament in September.

Egypt's public prosecutor extended Mubarak's detention by 15
days on Tuesday as an investigation continued into abuse of
public funds and the killing of protesters, a judicial source
said.

Mubarak, who has denied the allegations, was first detained
on April 13 but has been in a hospital in the Red Sea resort of
Sharm el-Sheikh since he suffered health problems under
questioning.

Garranah was found guilty of selling two tracts of public
land in Red Sea province below their market value to two
businessmen, the Cairo criminal court said in a statement.

The three were fined 293 million Egyptian Pounds ($49.34
million) and ordered to give back the two plots.

One of the businessmen was Hussein Habib Sajwani, chairman
of the Dubai-based property developer Damac, which bought one of
the plots.

Damac said the court's verdict was politically motivated and
vowed to appeal.

"Damac stresses that the accusations levelled against it and
its chairman are without foundation and the company will
continue to refute these accusations without reservation," it
said in a statement.

The second plot, also on the Red Sea, was allocated to a
company owned by Hisham al-Haziq, who is head of the board of
directors of the Gamsha tourism development company.

Sajwani and Haziq were tried in absentia. Egyptian officials
said their whereabouts were unknown.

Last week, Mubarak's Interior Minister Habib el-Adli was
jailed for 12 years for money laundering and profiteering.
(Editing by Andrew Dobbie)